Nathan Hanflink, Medicare Kickback Scheme, Pennsylvania 2023

PITTSBURGH, PA – Dr. Nathan Hanflink, a physician from Mt. Dora, Florida, is shelling out $911,136.75 to settle allegations of a dirty deal involving illegal kickbacks and fraudulent claims to Medicare, United States Attorney Scott W. Brady announced today. The feds say Hanflink lined his pockets by steering patients to a Pennsylvania drug testing lab in exchange for payments, then billed Medicare for services obtained under this corrupt arrangement.

The scheme centered around Universal Oral Fluid Laboratories (UOFL) in Greensburg, Pennsylvania. According to investigators, UOFL paid Dr. Hanflink for patient referrals. UOFL then submitted those claims to Medicare for drug testing. The United States alleges this cozy financial relationship between the doctor and the lab was a clear violation of both the physician self-referral law – known as the Stark Law – and the Anti-Kickback Statute, triggering liability under the False Claims Act. It’s a classic case of profiting from patient care.

The Stark Law is pretty straightforward: doctors can’t send Medicare patients to facilities they have a financial stake in, unless specific exceptions apply. This one apparently didn’t. Similarly, the Anti-Kickback Statute makes it illegal to offer or receive anything of value to influence healthcare referrals. Both laws are designed to ensure medical decisions are based on patient need, not financial gain. When doctors and labs cut deals like this, it contaminates the entire system and costs taxpayers dearly.

Violating these laws isn’t just unethical, it’s expensive. The False Claims Act allows for treble damages – meaning the government can recover three times the amount of the fraudulent claims – plus hefty penalties. This settlement isn’t an admission of guilt, the DOJ notes, but it’s a significant hit to Hanflink’s finances and a clear message that healthcare fraud won’t be tolerated. The feds aren’t messing around.

But the financial penalty isn’t the only consequence for Dr. Hanflink. He’s also signed an Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General. This means his billing practices will be under intense scrutiny for the next three years, ensuring he doesn’t try to pull a similar stunt again. It’s a probationary period to keep him honest, or at least make it harder to cheat.

The investigation was a joint effort by the Federal Bureau of Investigation, the Office of Inspector General of the United States Department of Health and Human Services, and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorneys Rachael L. Mamula and Paul E. Skirtich led the charge. The claims resolved by the settlement are allegations only, and there has been no determination of liability. This case serves as a stark reminder that the long arm of the law reaches into every corner of the healthcare system.

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